Facts About Redundancy Insurance

By Author: Shourya Ray Chaudhuri
Total Articles: 598
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The other terms for Redundancy insurance are redundancy cover or unemployment insurance that offers a way of guaranteed regular income to a person who loses his source of income due to sudden and involuntary redundancy. Until the policy holder manages to find an alternative way of gaining income, his/her financial requirements are met by Redundancy insurance. It usually covers a period of one year and it means the policy holder will receive the necessary financial benefits for one year starting from the time of his unemployment. Ofcourse there are insurance providers who offer this redundancy insurance for a longer period of time even up to two years. But you need to know that the premiums would be higher in the case of long-term policies.

Who is eligible for redundancy insurance? A person who has lost his job due to his poor performance or economic turn out, a person who is not fit to work because of injury at work or caused by some sickness, A person who has paid all the premiums regularly and continues to pay during the period of claim, a person who has been without job for more than six months before making a claim ...
... and also a person who is desperately searching for a job and is able to prove this.

There are three types of redundancy insurance coverage like salary protection insurance, mortgage protection insurance and rental payment insurance. Salary protection insurance is tax-free payments which covers normal living expenses. In this plan, individuals are entitled to higher payout and so the premiums are also higher as the individuals get nearly 50% of their normal monthly income. Next you have mortgage protection insurance to protect the monthly mortgage repayments to lenders. The last ofcourse is the rental payment insurance where a person receives rental payments and ofcourse this is a short-term policy.

You need to keep in mind a few things while buying redundancy insurance. You should know that most of these policies have a waiting period prior to the claim and this could be from a month to a year. The longer you wait, the policy would be cheaper. The next aspect to keep in mind is that you can make claims only if the policy holder has been made redundant by force and was totally blind about this while buying the policy. Moreover a person who has taken voluntary retirement or resigned or chucked out of his job due to misconduct cannot make a claim. After the period of coverage is over, one need to search for other means of income and it could be even social security.

To get a redundancy insurance is quite simple as all that you need to do is to search in the internet and provide all details regarding your age and monthly cost of mortgage so as to calculate the premium.

Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Redundancy Insurance
Get more information: Unemployment Protection Insurance